U.S. panel urges more oversight of China investment

WASHINGTON (AP) - A congressional advisory panel is urging tighter screening of investment by Chinese state-owned companies in the U.S., saying they present unfair competition to American firms.

That's the primary recommendation of an annual report released Wednesday by the U.S.-China Economic and Security Review Commission. The panel advises Congress on the national security implications of the relationship between the world's two biggest economies.

It is proposing that Congress broaden the mandate of a committee chaired by Treasury Secretary Timothy Geithner that screens foreign investment proposals.

China accuses the U.S. of discriminating against its companies, although analysts say American firms face bigger obstructions investing in China. Chinese investment in the U.S. is still comparatively low but has risen sharply in recent years and is set to hit record levels in 2012.